LLR Partners has made an investment in BenefitExpress, a cloud-based employee benefits and health exchange services provider. The investment by LLR will be used to expand sales and marketing and continue to build out the platform.
BenefitExpress’ services include online enrollment, claims reimbursement, direct billing administration, total compensation statements, reporting, benefits administration, dependent verification, billing reconciliation, payroll integration, and voluntary benefits administration. BenefitExpress was founded in 2001 by Maria Bradley and is based in the Chicago suburb of Schaumburg (www.benefitexpress.info).
As part of the investment, Michael Sternklar, former head of Mercer’s North American benefits outsourcing business, will become CEO of BenefitExpress. Mr. Sternklar has more than 30 years of experience in senior positions with benefits administration companies including Fidelity Investments, Kwasha Lipton and PwC. Maria Bradley, founder and president, will remain with the company as a senior advisor and member of its board of directors.
“Maria Bradley and her management team have leveraged tremendous industry knowledge and experience to build a market-leading benefits administration platform, further distinguished by exceptional services capabilities and a loyal customer base,” said Mr. Sternklar. “Now with the capital and strategic support of LLR Partners, I am confident that BenefitExpress can accelerate new opportunities in this emerging space. I look forward to steering that growth.”
LLR Partners invests in technology and service businesses that have annual revenues of $25 million to $250 million. The firm’s target companies include those that serve commercial and government clients in the physical and cyber security markets, as well as government contractors to the US homeland security, defense, intelligence and healthcare agencies.
“Employers, brokers, insurance carriers and private exchanges are quickly recognizing their need for sophisticated software to manage communications, provide decision support, enroll employees and administer benefits,” said Sasank Aleti, a Vice President at LLR Partners. “BenefitExpress offers a configurable, scalable platform to automate this complex process. Led by Michael and the existing management team, the company has the opportunity to capture a significantly underpenetrated market.”
LLR is currently investing out of its fourth fund with $930 million of capital commitments. The firm has offices in Philadelphia and Arlington (www.llrpartners.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-23-16